Wall Street Wonders as GM Wanders
A day after General Motors Corp. reported a record $39 billion loss for the third quarter, several analysts downplayed its significance but warned that the automaker's profits will continue to be threatened by declining sales and cost pressures. GM said the loss, one of the biggest quarterly corporate deficits ever, was mainly the result of a $38.6 billion noncash charge related to accumulated deferred tax credits.
The No. 1 U.S. automaker also reported a loss of $757 million from its 49 percent stake in GMAC Financial Services, due largely to losses at GMAC's mortgage arm.
The results, which fell dramatically short of Wall Street projections, sent GM shares tumbling $2.11, or 6.1 percent, to close Wednesday at $33.95.
The drop continued Thursday, with GM shares falling another $1.22, or 3.6 percent, to $32.73 in afternoon trading. Over the past 52 weeks, the Detroit-based automaker's shares have traded between $28.49 and $43.20. cnbc.com